12 people arrested in connection with Detroit racketeering ring

Defendants accused of using fake Social Security numbers

DETROIT – State officials arrested 12 people in connection with a Detroit racketeering ring involving a tax fraud scheme in which members used fake Social Security numbers to cash in on more than $100,000 in Homestead Property tax credits from the Michigan Department of Treasury, officials said.

The alleged scheme ran from February 2014 to April 2018, authorities said.

Once tax credit applications were filed with the Michigan Department of Treasury and funds were received by members of the racketeering ring, they would split the proceeds with ring leaders Persalyn Williams and Lamar Jackson, according to authorities.

All 12 people listed addresses for themselves or others involved in the scheme as the place to receive the checks, officials said.

The Department of Treasury referred the case to the Michigan Department of the Attorney General after a standard audit of the returns showed potential illegal activity, according to officials.

"It's unfortunate these individuals appear to have taken advantage of a tax credit designed to give working families and individuals a helping hand," Michigan Attorney General Dana Nessel said. "I want today’s actions to send a crystal-clear message to those who abuse our tax system: You will be held accountable for your actions."

Williams, 41, is charged with one count of conducting a criminal enterprise and two counts of larceny by false pretenses. She is accused of receiving more than $50,000 from the scheme.

Johnson, 38, is charged with one count of receiving proceeds from a criminal enterprise and two counts of larceny by false pretenses. He is accused of receiving more than $15,000 from the scheme.

William Mattox, 48, is charged with one count of receiving proceeds from a criminal enterprise and three counts of larceny by false pretenses. He is accused of cashing $8,846 in rebate checks.

Sherry Gallmore, 26, is charged with one count of receiving proceeds from a criminal enterprise and two counts of larceny by false pretenses. She is accused of cashing $8,529 in rebate checks.

Lashwanda Huffman-Williams, 42, is charged with one count of receiving proceeds from a criminal enterprise and two counts of larceny by false pretenses. She is accused of cashing $25,399 in rebate checks.

Claud Sherman Huffman, 59, is charged with one count of receiving proceeds from a criminal enterprise and three counts of larceny by false pretenses. He is accused of cashing $11,953 in rebate checks.

Crystal Dail, 56, is charged with one count of receiving proceeds from a criminal enterprise and two counts of larceny by false pretenses. She is accused of cashing $3,991 in rebate checks.

Elizabeth Davis, 37, is charged with one count of receiving proceeds from a criminal enterprise and two counts of larceny by false pretenses. She is accused of cashing $5,888 in rebate checks.

Krystal Allen, 36, is charged with one count of larceny by false pretenses and one count of conspiracy. She is accused of cashing $5,866 in rebate checks.

Anthony Sykes, 28, is charged with one count of larceny by false pretenses. He is accused of cashing $1,995 in rebate checks.

Two others are expected to be charged as part of the racketeering ring, officials said.

Probable cause conferences for the 10 people listed above are scheduled for 8:30 a.m. Tuesday in 56A District Court.